Ken Langone Member Ge Compensation Committee Case Study Solution and Analysis
Introduction
Ken Langone Member Ge Compensation Committee Case Study Help is the biggest publishing business with a greatest market share in the China's book retail market. CMP has ended up being a specialized information service provider and a large comprehensive Science and Technology publishing business through the combination of print media, audio-visual media and the network media.
Critical Concerns
Although, Ken Langone Member Ge Compensation Committee Case Study Analysis has actually spent its 60 years journey efficiently, being a successful publishing house, nevertheless, the changing macro market trends and forces bring certain challenges to the publishing market in general and CMP in specific. These factors consist of;
• Entrance of the brand-new publishing firms in the market.
• Decreasing growth of the publishing market.
• Market saturation.
• Introduction of digital publishing methods
• Improvement of science and technology.
The change of the macro markets have raised several concerns to the management at CPM that what could be the future of CMP in this circumstance? Do the long important experience, technical resources and the capabilities of the company could be used to pursue the future development unceasingly? How could the business sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Ken Langone Member Ge Compensation Committee Case Study Analysis has specific strengths that can be utilized to minimize the hazards, get rid of the weakness and obtain the opportunities. Strengths of CMP are given as follows;
• The long term experience of Ken Langone Member Ge Compensation Committee Case Study Solution in the publishing market i.e. 60 years enables the company to supply high quality products at a lower cost using its previous experiences.
• The technical resources and capabilities generated by its successful journey offer a competitive benefit to CMP.
• Large product portfolioof CMP assists it to diversify its threat and supply high worth to its clients.
• Strong monetary position allows the business to think about numerous development opportunities without any fear of raising fund externally.
Weaknesses
Along with the strengths, the company has specific weak points which might increase restraints for the company in implementing its development program. The weaknesses of Ken Langone Member Ge Compensation Committee Case Study Help are given as follows;
• Despite of being a science and technology publishing company, the business still has standard methods ofpublishing which are not suitable with the growing technological shift.
• CMP extremely relies over the Chinese markets for its development. It should propose specific growth strategies to prevent its dependence over the Chinese markets to accomplish long term development.
Opportunities
Although, the development of the publishing industry is declining since 2008, affecting Ken Langone Member Ge Compensation Committee Case Study Analysis as well, but the growth could be revived by availing certain chances presented in the market. The market chances for CMP consist of;
• The business might also present Digital Publishing by using its long term technical experience and a strong customer acknowledgment in the market.
• CMP could consider an advancement program through the growth towards foreign markets in order to decrease its dependence over Chinese markets by using its huge financial resources.
Dangers
The changing macro trends in the market and increasing competitors in the publishing industry has posed specific dangers to Ken Langone Member Ge Compensation Committee Case Study Analysis including;( Gurel, 2017).
• Intro of digital publishing i.e. digital libraries could result in decreasing market share of Ken Langone Member Ge Compensation Committee Case Study Help due to the consumer shift towards virtual libraries.
• The existence of large number of rivals in the publishing industry increase the hazard for CMP to lose its competitive position in the market, as rivals can get a strong customer base by utilizing certain strategies like aggressive promo, quality items, etc.
• Entryway of brand-new publishing companies in the market together with existence of high competitors increases the danger of losing the consumer base.
Financial Analysis.
The business has a quite competitive monetary efficiency. Due to lack of data, the monetary ratios of CMP might not be calculated. The total monetary efficiency of the business could be analyzed by using the charts given in the case Appendices. It might be examined from the Appendix III that the annual overall incomes of CMP during the period 2000-2012 are growing at a high development rate, showing that the annual need of the products of Ken Langone Member Ge Compensation Committee Case Study Solution is growing and the business is rather efficient in bring in a large number of customers at a potential rate.
Along with it, the 2nd graph which shows the annual growth in the Ken Langone Member Ge Compensation Committee Case Study Solution total assets, reveals that the business is rather efficient in including value to its properties through its revenues. The growth in properties shows that the overall worth of the firm is likewise increasing with increasing the total revenues. (Unknown, 2013).
Another financial analysis of the business using the given data could be the analysis regarding the distribution of total revenues of the business. Huge part of the earnings of CMP originates from the sales of its released books i.e. 64% as displayed in the Case Appendix V. The company could move towards other service sections with a potential growth to accomplish its future development objective.
PESTEL Analysis
PESTEL analysis could be performed to find out the various external forces impacting the efficiency of the company and the current trends in the external environment of the business. A short PESTEL analysis of the business is offered as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a substantial effect on the state of mind of individuals about the communist ideology of the government, for that reason, the publishing sector is highly monitored and directed by the Publicity Department of the Communist Party of China. For that reason, it could be stated that the general political forces affecting Ken Langone Member Ge Compensation Committee Case Study Solution service are high. The government policies regarding the publishing sector are also increasing with the passage of time.
Affordable.
Economic forces affecting the publishing sector in general and the CMP in specific includesthe costs of paper, the income level of consumers, the inflation rate, and the overall GDP growth of the country. All these forces integrate impact the demand for the publishing market.
Social and Demographical.
Social and demographical forces consist of the population development, the customer's preferences towards checking out helpful products and so on. China has the highest population on the planet with a high population growth, revealing the increasing number of customers of the Ken Langone Member Ge Compensation Committee Case Study Help. The consumer preferences are shifting towards digital publishing rather than the traditional was of publishing. In this regard, CMP must focus on digital publishing to fulfill the changing customer choices.
Technological.
Technological forces affecting the CMP consist of the technological improvement in the reading strategies and so on. Enhancement of science and innovation in addition to the increase of digital publishing might minimize the demand for the CMP items, if specific actions would not be taken quickly.
Environmental.
Environmental forces impacting Ken Langone Member Ge Compensation Committee Case Study Help includes the concerns of environmental communities over the use of paper in publishing books. The paper used in the books while publishing is needed to be non reusable and the ink used while publishing should not be harmful for the environment.
Legal.
Legal guidelines for the publishing sector at whole are high. The legal policies relating to the publishing sector is managed by the General Administration of Press and Publication. Publishing Regulation 1997 needs the publishers to be authorized initially by the Federal government to be entered in the publishing market. The ordinance forbids direct involvement of foreign entities and people in the publishing sector.
Market Analysis (Porter's 5 Forces Design).
Porter's Five Forces Model might be utilized to analyze the appearance of the publishing industry China. A quick analysis of the Porter's 5 Forces is offered as follows;.
Risk of New Entrants.
Risks of brand-new entrants in the Chinese Publishing Industry is moderate. The potential development in the industry tends to attract brand-new entrants to the publishing market. Nevertheless, the presence of intense competitors and the requirement of big capital tends to demotivate new entrants to go into in the marketplace.
Risk of Replacement.
Threat of Substitution is high for the Chinese Publishing Market. The replacement items for the released files is the files provided in the digital libraries on particular websites. The changing consumer preferences towards digital knowing increase the danger of alternative for the market.
Competitive Competition.
Competitive rivalry in the publishing market is high. The existence of a great deal of consumers in the Chinese Publishing Market like CIP, PTP etc. tends to produce high competitive rivalry for CMP. In addition to it, brand-new entrants are also participating in the marketplace increasing the competitors for CMP.
Bargaining Power of Provider.
The major providers of the Ken Langone Member Ge Compensation Committee Case Study Analysis include the providers of the paper for publishing files. As CMP is the largest publisher in the Chinese Publishing Market, therefore the general bargaining power of supplier for CMP is low.
Bargaining Power of Purchaser.
Bargaining power of buyer in the publishing industry is high. Due to the existence of a a great deal of publishers in the Chinese market and the marketplace saturation, the purchasers requires high quality files at competitive prices.
Competitors Analysis.
CMP runs in an extremely competitive market with the existence of large number of competitors. However, the company has a competitive position in the market with the highest market share in the Chinese publishing market. Significant competitors of Ken Langone Member Ge Compensation Committee Case Study Solution consist of;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIPis one of the close competitors of CMP. Founded in the very same duration, CIP publishes similar type of books. For a large period, CIP held the largest market share, and still ranks third and second in different market sectors, with a major focus on educational publications. CIP serves as a hazard for CMP as it could wean its market share due to its long term competitive background. CIP is concentrated on digital publishing and could wean the marketplace share of Ken Langone Member Ge Compensation Committee Case Study Help quickly in the current market circumstance.
Posts and telecommunication Press (PTP).
It was also founded in the same period as Ken Langone Member Ge Compensation Committee Case Study Solution and CIP. It is also one of the prominent gamers in the publishing industry with an annual total earnings of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Reducing dependence over the Chinese markets.
• Increasing number of Consumers
• Growth chances.
• Preventing the impact of market saturation in the Chinese publishing industry.
Cons
• Usage of potential resources in growth.
• Threat of failure in new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining customer base.
• Approaching new markets.
• Easy to present using existing abilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased product portfolio provides high value to consumers.
Cons
• Competitors in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core service sectors to the new one can lead the business to lose need of its items in the market.
Suggestions
With the deep analysis of the internal and external environment of the company along with the industry analysis and the competitor analysis, Alternative 2 is suggested to CMP to accomplish its future development. As the choices are shifting towards digital publishing and the company require an immediate option to prevent the declining market development. For that reason, introduction of digital publishing might show to be an immediate service with low amount of danger for the company. However, the business might also consider the expansion program after the success of its digital publishing program.
Application
In order to present digital publishing in its item portfolio, the business must first collects the information related to the customer need, the potential markets, the federal government policies and the data related to the competitors presented in the market. If the preliminary offering shows a success, the company should go for the other markets. In this way the company would be able to execute its digital publishing program.
Conclusion
The growth of the publishing market is decreasing since 2008, showing a danger to the business's long term presence, however the scenario can be controlled by thinking about a development strategy in the future. The business might think about introducing digital publishingin its existing market to execute its development program at instant basis and to avoid the threat of failure for entrance in the brand-new markets.
